Covansys Acquired for $1.3B
Date: Wednesday , May 02, 2007
As a part of extending its workforce in India to about 14,000, Computer Sciences Corporation (NYSE: CSC) and Covansys Corporation (NASDAQ: CVNS) announced that they have entered into an agreement under which CSC will acquire Covansys for $34 per share in an all-cash transaction.
The $1.3 billion transaction is expected to complete during the second quarter of CSC’s fiscal year 2008. CSC, a provider of IT services, reported revenue of $14.7 billion for the 12 months ended December 29, 2006. Covansys had revenues of $455.5 million for the 12 months ended December 31, 2006.
Raj Vattikuti founded Covansys, originally named Complete Business Solutions, in 1985 with five employees. Today, Covansys has 9,000 employees, over 70 percent of them based in Bangalore, Chennai and Mumbai. Known for a major presence in the healthcare, financial services, retail and distribution, manufacturing, telecommunications and high-tech industries, Covansys kicked off its Indian operations in 1991 much before the Indian offshoring story gained currency.